user
Write a response that appropriately completes the request.

### Instruction:
Name five common types of pension funds

### Response:
assistant
The five common types of pension funds are defined benefit plans, defined contribution plans, hybrid pension plans, cash balance plans, and 401(k) plans. Defined benefit plans provide a predetermined annual income based on tenure of service and salary. Defined contribution plans involve contributions of a specified sum to an individual retirement account or pension fund. Hybrid pension plans combine features of both defined benefit and defined contribution plans. Cash balance plans are a hybrid plan and both employers and employees can make contributions. Lastly, 401(k) plans offer tax incentives for contribution and deferred taxation of withdrawals.